Native tokens from sister networks Polkadot (DOT) and Kusama (KSM) have recovered today after the start of the Parachain auctions, when Acala Network raised over USD 100 million in KSM for its Karura network.
Source: iStock / PeskyMonkey
DOT is up nearly 10% in the past 24 hours and is currently trading at nearly $ 24 (09:30 UTC). KSM rebounded over 18% to hit $ 512.
Polkadot is a shard protocol that enables different blockchain networks to work together. It enables blockchain applications to be connected and started using parachains (sovereign blockchains or shards with unique functions) to connect to different networks. Kusama, Polkadot’s Canarian network, has its own parachain, Karura, which was built by the Acala Foundation.
As described by Polkadot and Kusama inventor Gavin Wood, Parachain slot auctions are designed to enable projects to secure a place in the Polkadot and Kusama ecosystems. The auctions will continue in the coming weeks, when various projects can submit bids in order to obtain a lease for the construction on Kusama. In his words, the auctions are “a market efficient way of choosing which parachains are added to the Kusama relay chain and their functionality becomes part of the Kusama network”.
According to Woods Post, the next five slot auctions will take place over the next five weeks with a short break for evaluation. The auction dates for Parachain on Polkadot have not yet been set.
Acala Network, Pokaldot’s DeFi-Hub, and Parachain appear to be gaining community support in the first Kusama Parachain Lease auction for its Karura network, as it has raised over $ 100 million in KSM at the time of writing. Funding came from more than 900 addresses on the Kraken exchange and over 7,600 supporters through the Karura portal, per data shared with Cryptonews.com.
“This level of support for our launch from Karura to Kusama and later from Acala to Polkadot is testament to the positive demand for interoperable, decentralized financial products,” said Ruitao Su, co-founder and CEO of Karura and Acala.
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